Financial Review: Taboola.com (NASDAQ:TBLA) & TaskUs (NASDAQ:TASK)

Taboola.com (NASDAQ:TBLA) and TaskUs (NASDAQ:TASK) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Taboola.com and TaskUs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taboola.com	0	3	5	0	2.62
TaskUs	2	4	1	1	2.12

Taboola.com presently has a consensus target price of $5.90, suggesting a potential upside of 23.04%. TaskUs has a consensus target price of $11.20, suggesting a potential upside of 109.54%. Given TaskUs’ higher probable upside, analysts clearly believe TaskUs is more favorable than Taboola.com.

Insider & Institutional Ownership

42.9% of Taboola.com shares are held by institutional investors. Comparatively, 44.6% of TaskUs shares are held by institutional investors. 20.6% of Taboola.com shares are held by insiders. Comparatively, 31.9% of TaskUs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Taboola.com and TaskUs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taboola.com	5.64%	10.72%	6.37%
TaskUs	8.70%	24.93%	12.12%

Risk & Volatility

Taboola.com has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, TaskUs has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.

Valuation & Earnings

This table compares Taboola.com and TaskUs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.91 billion	0.61	$42.28 million	$0.38	12.62
TaskUs	$1.18 billion	0.41	$102.28 million	$1.14	4.69

TaskUs has lower revenue, but higher earnings than Taboola.com. TaskUs is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.

Summary

TaskUs beats Taboola.com on 10 of the 15 factors compared between the two stocks.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.